(a) What is Local Government? (b) Highlight five sources of Local Government revenue.

Explanation

(a) Local government is a semi-autonomous body created by law to provide the needs of the people at the grassroots level.

(b)(i) Grants from central government.

(ii) Statutory Allocation e.g. Nigeria from the Federation Account.

(iii) Rates/levies: There are rates people pay to maintain, sustain and expand social services.

(iv) State allocation: In Nigeria, at least 10% of internally generated revenue of the State Government.

(v) Investment in business yields to the local government.

(vi) Fees from liquor licenses, registrations, markets, motor parks, etc.

(vii) Court fines: (Share of court fines in Nigeria).

(viii) Donations and Gifts from NGO's, citizens, etc.

(ix) Royalties from companies in (Ghana, Sierra Leone and The Gambia).